Tech Mahindra, the homegrown telecom software company, reports strong financials in Q1 (12-13), despite recession in domestic telecom industry!

Tech Mahindra, India’s sixth largest software exporter and the No 1 Telecom Software Company*; today announced its audited consolidated financial results for the first quarter ended June 30th, 2012. Revenues were at INR 1,543 crore; up 19{af589cdba9d77786c8c861317dbad60bba1e2ebbf56e2ffab874a1b59fde9ce3} YoY and PAT before share of associate, at INR 188 crore; up 152{af589cdba9d77786c8c861317dbad60bba1e2ebbf56e2ffab874a1b59fde9ce3} QoQ.

 Financial highlights for the Quarter (INR)

  • Revenue at INR 1,543 crore; up 9{af589cdba9d77786c8c861317dbad60bba1e2ebbf56e2ffab874a1b59fde9ce3} QoQ
  • Operating Profit (EBITDA) at INR 330 crore; up 38{af589cdba9d77786c8c861317dbad60bba1e2ebbf56e2ffab874a1b59fde9ce3} QoQ
  • PAT before share of Associate at INR 188 crore up 152{af589cdba9d77786c8c861317dbad60bba1e2ebbf56e2ffab874a1b59fde9ce3} QoQ
  • PAT including share of Associate at INR 338 crore up 12{af589cdba9d77786c8c861317dbad60bba1e2ebbf56e2ffab874a1b59fde9ce3} QoQ
  • Earnings per Share (EPS) was INR  26.5 for the quarter ended June 30th, 2012

Financial highlights for the Quarter (USD)

  • Revenue at USD 281 mn; flat QoQ
  • Revenue on constant currency basis was at USD 284 mn
  • Operating Profit (EBIDTA) was USD 60 mn; up 26{af589cdba9d77786c8c861317dbad60bba1e2ebbf56e2ffab874a1b59fde9ce3} QoQ
  • PAT before share of Associate at USD 34 mn; up 128{af589cdba9d77786c8c861317dbad60bba1e2ebbf56e2ffab874a1b59fde9ce3} QoQ
  • PAT including share of Associate at USD 61mn; flat QoQ

Other Highlights for the quarter ended June 30, 2012

  • Total headcount stood at 40,630. Software Professional headcount at 24,768, BPO at 14,608 and Support staff at 1,254
  • Debt at INR 886 crores as of June 30, 2012;  a decrease of  INR 240 crores during the quarter
  • Cash and Cash equivalent stood at INR 280 crores on balance sheet as of June 30, 2012

Vineet Nayyar, Vice Chairman, MD and CEO of Tech Mahindra said, “Our focus on operational efficiencies has led to margin improvement, we continue to focus on expansion of our service offerings and increasing business momentum through customer centricity and increased market coverage.”

Key wins

  •  Chosen by a leading European Telco for End-to-End services to be delivered via a global test factory. The scope of work will include traditional OSS / BSS, Networks and Infrastructure
  •  Won an End-to-End application production support contract with one of the leading US Telco and the scope covers second level operational support for the critical suite of client applications.
  •  Selected by a leading European Telco to provide Network Platform and Application development. The transformation engagement will encompass migration and up gradation of the current platforms to optimize the customer call flows.
  • Awarded a System Integration project by a leading Middle East Telco to implement their Mobile Number Portability (MNP) solution

Business Highlights

  • The Merger of Tech Mahindra and Mahindra Satyam announced on 21st March 2012 is progressing as per schedule. During the quarter, Tech Mahindra has got approval from Competition Commission of India (CCI), while the shareholders gave their approval in the court convened meeting held on 7th June 2012.
  • Tech Mahindra inaugurated its 6th SEZ facility with a delivery and development centre in Noida, Uttar Pradesh. The new facility inaugurated by Anand Mahindra, Chairman, is build to attain a fine balance between technology and a good eco system for the associates. The Noida campus has attained the highest assessment of SEI-CMMI-DEVv1.3 Maturity Level 5
  • Mahindra Satyam, Tech Mahindra and CA Technologies entered into a global partnership, through completion of a Global Framework Agreement (GFA). The partnership facilitates provision of shared and managed services to new and existing customers through a joint, strategic approach. Further, Tech Mahindra and Mahindra Satyam established the Mahindra CA research centre at Pune which will enable co-innovation and delivery of joint offerings
  • Tech Mahindra and Mahindra Satyam announced the setting-up of BMC Software-Mahindra Center of Excellence (CoE) at Tech Mahindra’s Hinjewadi facility at Pune. The CoE is focused around developing solutions leveraging BMC’s Business Service Management (BSM) portfolio and Cloud Lifecycle Management solutions. This center will enable co-innovation and delivery of joint offerings
  • Tech Mahindra signed the channel partner reseller agreement with EMC Information systems International, a global leader in enabling business and service providers to transform their operations and deliver information technology as a service. This agreement is a major step towards strengthening the strategic partnership between the two companies






Awards and Recognitions

  •  Voice & Data ranked Tech Mahindra as  No 1 company in Telecom Software Category for FY12
  • Canvas M  won award in “Innovation in Value Added Services” at the  6th  National Telecom Award ceremony 
Tags : Tech MahindraTech Mahindra Financial Results Q1 2013